All spends his income of s64 on kerosene (x) and food (y) each week. The price of food is se per unit. The price of kerosene is s4iter at a government-run store and he can purchase up to 8 iters there. On the market, kerosene costs s8/liter. His utility function is Cobb-Douglas: u(x, y) y, How much kerosene and food does he buy given his budget constraint? kerosene 5 food x unit(s) Suemit Anr
All spends his income of s64 on kerosene (x) and food (y) each week. The price of food is se per unit. The price of kerosene is s4iter at a government-run store and he can purchase up to 8 iters there. On the market, kerosene costs s8/liter. His utility function is Cobb-Douglas: u(x, y) y, How much kerosene and food does he buy given his budget constraint? kerosene 5 food x unit(s) Suemit Anr
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Ali spends his income of $64 on kerosene (x) and food (y) each week. The price of food is $8 per unit. The price of kerosene is $4/liter at a government-run store and he can purchase up to 8 liters there. On the market, kerosene costs $8/liter. His utility function is Cobb-Douglas: u(x, y) = x5y3. How much kerosene and food does he buy given his budget constraint?
kerosene
5
3
]× _unit(s)
food
Submit AnsN
giageםוםוינלו םהיווינגב3d 45כההביכניכו יכויכיהיכיכניבויכימוינרuב 5ה בההםיכ יבוניכררה נתמ'נלau םיכוימיכויכויכ בתח4C#aצפוסעישמומא נמ !עינהינבא ה3 45 כ ה הביכיכר תהביכר1c-](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb2968ad4-6691-4ea2-bf40-4edded144a1e%2F6edfec25-835a-42ee-a9b0-ef68456f9e6e%2Fvyb08u7_processed.png&w=3840&q=75)
Transcribed Image Text:Ali spends his income of $64 on kerosene (x) and food (y) each week. The price of food is $8 per unit. The price of kerosene is $4/liter at a government-run store and he can purchase up to 8 liters there. On the market, kerosene costs $8/liter. His utility function is Cobb-Douglas: u(x, y) = x5y3. How much kerosene and food does he buy given his budget constraint?
kerosene
5
3
]× _unit(s)
food
Submit AnsN
giageםוםוינלו םהיווינגב3d 45כההביכניכו יכויכיהיכיכניבויכימוינרuב 5ה בההםיכ יבוניכררה נתמ'נלau םיכוימיכויכויכ בתח4C#aצפוסעישמומא נמ !עינהינבא ה3 45 כ ה הביכיכר תהביכר1c-
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